Here's Exactly How I Help Small Business Owners Get Out of Debt (Step-by-Step)
If your business is carrying debt right now, you're not alone — and you're not failing. Debt happens. Slow seasons happen. Equipment breaks, payroll doesn't wait, and sometimes a credit card is the only thing standing between you and keeping the lights on.
But carrying debt without a plan is different from carrying debt with one. Over the years, I've walked small business owners through the exact same process to get out from under it — and I want to lay it out for you here, step-by-step, so you can start working through it today.
Step 1: Lay It All Out
Before you can fix anything, you have to see all of it. Not the rounded-off, "I think I owe about..." version — the real numbers.
For every debt, write down:
Who you owe
How much
Interest rate
Minimum payment
Due date
This is the most important step in the entire process. You cannot fix what you refuse to look at. Most business owners avoid this step because it's uncomfortable — but discomfort now is a lot cheaper than surprise later.
Step 2: Separate Business Debt from Personal Debt
Business debt and personal debt are not the same problem, and they don't get the same solution. Mixing them together in your head (or on paper) makes the whole situation feel bigger and messier than it needs to be. Separate them out and treat each one with its own strategy.
Step 3: Calculate Your Debt Service
Add up the minimum payments across every single debt. That number is now a fixed monthly expense — treat it exactly like you'd treat rent. This is your baseline. Everything else you do from here works around this number.
Step 4: Prioritize by Interest Rate
Debt isn't all equal, and it shouldn't be paid off like it is. Work in this order:
Credit cards → Lines of credit → SBA loans
Make minimum payments on everything except your highest-interest debt. Every extra dollar you have goes toward that one, first. This is where most of the actual progress happens.
Step 5: The Snowball Effect
Here's where it gets satisfying. Say you were paying $300/month toward a credit card, and it's now paid off. Don't pocket that $300 — add it as additional payment on your next highest-interest debt.
That debt now gets paid down faster. And the debt after that, even faster. Each payoff rolls into the next, and the pace builds as you go — just like a snowball picking up speed downhill.
Step 6: Increase Revenue or Decrease Expenses
Every extra dollar goes toward debt. No new expenses. No new investments. Not right now. Keep this up until your highest-interest debt is completely gone, then let the snowball do its work on the rest.
Don't Take on New Debt to Pay Off Old Debt — Unless
The rule is simple: don't do it. Unless the new interest rate is significantly lower — and even then, you need a clear repayment plan before you sign anything. There's a specific way to structure this so it actually works in your favor instead of just moving the problem around. (This is one of the pieces I walk clients through individually, because it depends heavily on your specific numbers.)
Build a Small Cash Buffer at the Same Time
Yes — even while you're paying down debt, you need a small buffer building in the background. This is what keeps the next unexpected expense from landing straight back on a credit card and undoing your progress.
This Isn't Fast. But It Is Possible.
I won't tell you business debt disappears overnight, because it doesn't. But it is absolutely possible to get out — and there's a method that speeds up the process significantly when it's followed with discipline and the right order of operations.
Ready to Build Your Plan?
If this sounds like where your business is right now, you don't have to figure it out alone. Fill out the contact form and let us know what's going on — we’ll reach out personally.
We also offer a 90-day sprint designed specifically to help business owners structure a clear, workable debt repayment plan — one built around your actual numbers, not a generic template.
You built this business. Let's get it out from under the weight of debt so it can actually grow.
